1 Media fragmentation is a big plus for consumers but a disadvantage for advertisers and agencies a True b False ANSWER: DIFFICULTY: True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Marketing Plan Bloom's: Knowledge The underlying role and purpose of advertising and promotion has changed drastically and will continue to change a True b False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension Despite the explosion of new media in recent years, today’s media options have reduced from those available during the past decades a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: False Easy AIBP.OGUI.15.2-1 United States - BUSPROG: Analytic United States - Ohio - DISC: Marketing Plan Bloom's: Knowledge The simplest example of Web 2.0 is when consumers log on to the Internet and visit sites they choose to visit for either information or shopping a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: True Easy AIBP.OGUI.15.2-1 United States - BUSPROG: Technology United States - Ohio - DISC: Online/Computer Bloom's: Knowledge Blogs have emerged as sophisticated sources of brand and product information a True b False ANSWER: DIFFICULTY: True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Online/Computer Bloom's: Knowledge Due to the backlash against advertising that clutter can cause, advertisers are integrating more tools within the overall promotional effort to reach more consumers in different ways a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension Advertisers focusing on integrating more tools into promotional efforts has resulted in an enhanced role of traditional media a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: False Moderate AIBP.OGUI.15.2-1 United States - BUSPROG: Analytic United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension The idea behind crowdsourcing is to prevent ideas about a new brand from becoming public to consumers a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: False Moderate AIBP.OGUI.15.2-1 United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Strategy Bloom's: Comprehension The goal of creating persuasive communication is to attract attention and develop preference for a brand a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 10 Advertisers cannot function without the services of external facilitators a True b False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 11 Advertisers include business organizations, but exclude not-for-profit organizations a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: False Moderate AIBP.OGUI.15.2-2 United States - BUSPROG: Analytic United States - Ohio - DISC: Marketing Plan Bloom's: Comprehension 12 Trade resellers of consumer products and services are the most prominent users of advertising and promotion a True b False ANSWER: False DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: Easy AIBP.OGUI.15.2-2 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Knowledge 13 Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users a True b False ANSWER: DIFFICULTY: True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Marketing Plan Bloom's: Knowledge 14 At the local level, small retail shops deal only with household customers a True b False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 15 It is common for social organizations to advertise at the national, state, and local levels a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: True Easy AIBP.OGUI.15.2-2 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Knowledge 16 The advertising used by social organizations has a fundamentally different purpose compared to the advertising carried out by major multinational corporations a True b False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 17 Caltec Inc has a department that is responsible for coming up with ideas and innovative ways to advertise the company's products in newspaper ads and billboards This is an example of a full-service agency a True b False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 18 The creative boutique’s greatest advantage is its niche expertise a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 19 A creative boutique’s niche expertise can be its greatest liability if the creative boutique is an extra expense that advertisers cannot afford a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 20 Digital/interactive agencies are those that have expertise in preparing communications for new media, such as the Internet, mobile marketing, and interactive television a True b False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 21 The task of strategic coordination of media and promotional efforts has become simpler because of the proliferation of media options and extensive use of promotional tools beyond advertising a True b False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 22 A disadvantage of using media specialists is that they buy media in small quantities a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: False Moderate AIBP.OGUI.15.2-3 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Comprehension 23 Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: False Easy AIBP.OGUI.15.2-3 United States - BUSPROG: Technology United States - Ohio - DISC: Online/Computer Bloom's: Knowledge 24 It is mandatory for designers and graphic specialists to be involved in strategy planning a True b False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 25 Advertisers not like to handle their own public relations tasks because it requires highly specialized skills and talent not normally found within the company ranks a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 26 The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans a True b False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 27 Under the commission system, the rate of commission is raised to 25 percent for outdoor media a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: False Easy AIBP.OGUI.15.2-3 United States - BUSPROG: Analytic United States - Ohio - DISC: Pricing Bloom's: Knowledge 28 A typical markup charge for outside services is five to ten percent a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: False Easy AIBP.OGUI.15.2-3 United States - BUSPROG: Analytic United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 29 A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 30 Database consultants are particularly useful in planning coupon or direct mail campaigns a True b False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 31 Radio and satellite are examples of broadcast media a True b False ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: True Easy AIBP.OGUI.15.2-5 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Knowledge 32 Individuals collectively creating and sharing content through blogs, social media, wikis, and video sites is referred to as _ a a commission system b broadcasting c Web 2.0 d interactive production ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 33 has emerged as the most significant form of consumer control over information creation and communication a Web advertising b Social media c Interactive television d Direct marketing ANSWER: b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension 34 Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences are known as a paywalls b blogs c infomercials d creative boutiques ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: b Easy AIBP.OGUI.15.2-1 United States - BUSPROG: Technology United States - Ohio - DISC: Online/Computer Bloom's: Knowledge 35 Which of the following is true of crowdsourcing? a It refers to managing the supply chain system in a way that will most effectively reach the target markets b It aims at getting consumers more involved with and committed to a brand c It indicates the process of describing the firm’s objectives for the brand in the near term and long term d It refers to passive, intrusive advertising ANSWER: b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 36 has become a media conglomerate on the Web and amasses its own media empire of diverse Internet sites a ABC broadcasting network b Facebook c Dell d InterActiveCorp ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d Easy AIBP.OGUI.15.2-1 United States - BUSPROG: Analytic United States - Ohio - DISC: Online/Computer Bloom's: Knowledge 37 With media clutter and fragmentation,: a advertisers are developing a lack of faith in advertising alone b the probability of any one advertisement making a real difference has increased manifold c there are very few media choices available to advertisers d promotion options are no longer attractive to advertisers ANSWER: a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 38 is used by organizations to get consumers committed to brands in a way that passive advertising cannot a Co-op advertising b Phishing c Crowdsourcing d Broadcasting ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: c Easy AIBP.OGUI.15.2-1 United States - BUSPROG: Analytic United States - Ohio - DISC: Strategy Bloom's: Knowledge 78 is one of the world’s largest media conglomerates and provides broadcasting, film, music, cable, print, publishing, and a dominant Internet presence a News Corp b Fox Broadcasting Company c Sony Corporation d Time Warner ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d Easy AIBP.OGUI.15.2-5 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Knowledge 79 Which of the following best describes a media conglomerate? a It is a firm that operates multiple media combinations b It is a firm that is a specialist in one particular form of media c It is a firm that specializes solely in buying media time and space d It is a firm that uses print media instead of broadcast media ANSWER: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: a Easy AIBP.OGUI.15.2-5 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Knowledge 80 Design Solutions has two television network channels and its monthly magazine, Bling, is the most popular fashion magazine in the country It also has a number of websites for its television channels and online sports news Design Solutions is an example of a a creative boutique b media conglomerate c media specialist d digital/interactive agency ANSWER: b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 81 Which of the following is an example of outdoor support media? a Podcasts b Billboards c Catalogs d Electronic directories ANSWER: b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 82 Which of the following is an example of interactive media? a Banners b Electronic directories c Catalogs d CD-ROMs ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 83 Which of the following is an example of premiums, a type of support media? a Transit b Cable c Calendars d Billboards ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension Scenario 2-1 As one of the world’s largest computer and technology developers, Dell, Inc has never been a stranger to advertising However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market However, the company’s new ad campaign, which will be targeted toward more high-end users, will make no mention of product price The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign 84 (Scenario 2-1) Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign However, full-service agencies provide a number of advantages— one of these advantages is that they: a are always large, employing thousands of people b can provide the physical facilities for broadcast production c have an array of talented professionals to meet all the needs of a client d are the only way to create an ad campaign ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 85 (Scenario 2-1) In order to reinvent the company’s image, Dell puts together a team comprising members from its marketing department who will be responsible for every aspect of the advertising campaign The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign This team will be an example of a(n): a creative boutique b full-service advertising agency c fulfillment center d in-house agency ANSWER: d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 86 (Scenario 2-1) To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line This company is an example of a(n): a fulfillment center b database agency c sales promotion agency d market research firm ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 87 (Scenario 2-1) Dell plans to strengthen its relationships with the media, industry associations, and its various competitors In such a scenario, Dell would be hiring to help strengthen their relationships a a public relations firm b a market research firm c a creative boutique d a database agency ANSWER: a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people The town is also home to a major State University Brush Strokes gets a majority of its business from the student population It uses the services of a local full-service advertising agency to promote themselves A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University’s football and basketball games While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this 88 (Scenario 2-2) Which one of the following would Brush Strokes’s full-service agency be least qualified to handle? a Researching about the buying trends of the company's customers b Creating a 30-second television commercial c Forecasting dividend earnings of stockholders d Generating awareness about the brand ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 89 (Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine ways in which it can benefit most from advertising The agency has agreed to help in identifying the benefits of the brand, its target audience, the best competitive positioning, and developing a complete plan In such a scenario, which of the following services is the agency offering? a Media buying services b Billing services c Account services d Marketing services ANSWER: c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 90 (Scenario 2-2) Brush Strokes is looking for a way to increase sales The advertising agency helps create an innovative message that will be conveyed through promotions and mobile marketing Which of the following agency services is the company using? a Billing services b Creative services c Administrative services d Media buying services ANSWER: b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS: United States - ohio - DISC: Creativity Bloom's: Application 91 (Scenario 2-2) The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency Brush Strokes can avoid paying for ineffective advertising campaigns by changing to a system of compensation a commission b fee c pay-for-results d markup charge ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application Scenario 2-3 Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad 92 (Scenario 2-3) Which of the following agencies would help improve the ideas that Axel Corp has for its advertisement? a A direct marketing agency b A creative boutique c A database agency d A fulfillment center ANSWER: b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 93 (Scenario 2-3) Which of the following is most likely to provide Axel Corp with a reasonable amount of media time at a rate lower than that provided by an advertiser? a Production houses b Sales promotion agencies c Database consultants d Media specialists ANSWER: d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Promotion Bloom's: Application 94 (Scenario 2-3) Axel Corp plans to to reach out to local fashion stores and wholesale distributors Axel Corp can achieve this by employing an advertising agency specialized in a consumer sales promotions b trade-market sales promotions c infomercials d a commission system ANSWER: b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 95 (Scenario 2-3) A(n) using traditional media a database consultant b public relations firm can help Axel Corp in designing and executing direct response advertising campaigns c fulfillment center d interactive agency ANSWER: a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 2-4 Caltech Corp has a 15 minute advertisement that is aired on a local news channel explaining to the public the benefits of its product Sparkles Inc has provided Caltech Corp airtime on its television network, and has offered to advertise its product on its website as an act of goodwill 96 (Scenario 2-4) Caltech Corp has a 15 minutes long advertisement that explains to the public about its product This is an example of a(n) a podcast b electronic directory c blog d infomercial ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 97 (Scenario 2-4) Sparkles Inc is an example of a a production facilitator b full-service agency c media conglomerate d fulfillment center ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Promotion Bloom's: Application Scenario 2-5 In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various “deals of the day.” At the time, Groupon had a unique business model—each day, one “groupon” would be offered in a particular city If a certain number of people signed up for the offer, then the deal became available to all Now, only two years later, the business continues to grow, and the service is being offered in several more U.S cities Google made a multi-billion dollar offer for the company that Mason turned down in the December of 2010 Continuing the company’s rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company’s success 98 (Scenario 2-5) As Groupon’s services differ depending on the city in which it is offered, its CEO decides that each variation needs to have a catchy slogan that relates to that particular market Which of the following types of advertising agencies would likely be the best choice to create these slogans? a A digital/interactive agency b A media specialist c A creative boutique d An production facilitator ANSWER: c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 99 (Scenario 2-5) Groupon’s management has budgeted $20,000 for social media advertising this year How much can their advertising agency expect to earn if they are using a traditional commission system? a $2,000 b $3,000 c $5,000 d $8,000 ANSWER: b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 100 (Scenario 2-5) Groupon decides to hire a full-service advertising agency to create a new campaign for the company The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site This is an example of a(n) system of compensation a fixed fee b commission c incentive-based d markup charge ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS: United States - Ohio - DISC: Pricing Bloom's: Application 101 (Scenario 2-5) Groupon decides to find a firm that can help them in planning, preparing, and executing promotional campaigns The company whose services Groupon is seeking is referred to as a(n): a client b database consultant c sponsor d external facilitator ANSWER: d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 2-6 Pink Inc has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise Ripple Effects has agreed to provide Pink Inc with the cast and crew required to create the advertisement, choosing the location and the set up Pink Inc has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative Glamour has charged the firm $50,000 per hour for its services 102 (Scenario 2-6) Ripple Effects is an example of a a media specialist b creative boutique c database consultant d production house ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 103 (Scenario 2-6) Glamour is an example of a a media specialist b direct marketing agency c creative boutique d digital/interactive agency ANSWER: c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 104 (Scenario 2-6) Glamour follows a a commission b cost-plus system of compensation c markup charge d fee ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 105 (Scenario 2-6) Pink Inc has chosen to advertise using key chains and complementary pens with the firm's logos on them The type of media chosen by Pink Inc is referred to as a infomercials b print media c interactive media d support media ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 106 What is crowdsourcing? Explain ANSWER: Crowdsourcing involves the online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers The idea behind crowdsourcing is to get consumers more involved with and committed to a brand in a way that passive, intrusive advertising simply cannot Consumers help “build the brand” with recommendations for features or even advertising campaign images They also can communicate about the brand to audiences in ways that seem natural and credible— something corporate-launched advertising struggles with DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension 107 Describe the role advertisers play for trade resellers ANSWER: A trade reseller is a general description for all organizations in the marketing channel of distribution that buy products to resell to customers Resellers can be retailers, wholesalers, or distributors These resellers deal with both household consumers and business buyers at all geographic market levels Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users Regional retail chains, typically grocery chains or department stores serve multistate markets and use advertising suited to their regional customers At the local level, small retail shops of all sorts rely on newspaper, radio, television, and are a completely different breed of reseller Technically, these types of companies deal only with business customers, since their position in the distribution channel dictates that they sell products either to producers (who buy goods to produce other goods) or to retailers (who resell goods to household consumers) Wholesalers and distributors have little need for mass media advertising over media such as television and radio Rather, they use trade publications, directory advertising such as the Yellow Pages and trade directories, direct mail, personal selling, and their Internet websites as their main advertising media DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 108 Describe any three types of services commonly offered by advertising and promotion agencies ANSWER: The types of services commonly offered by advertising and promotion agencies are as follows: Account Services: These services are offered by managers who have titles such as account executive, account supervisor, or account manager and who work with clients to determine how the brand can benefit most from advertising and IBP Account services entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan Marketing Research Services: Research conducted by an agency for a client usually consists of the agency locating studies (conducted by commercial research organizations) that have bearing on a client’s market or advertising and IBP objectives The research group will help the client interpret the research and communicate these interpretations to the creative and media people Creative Services: The creative services group in an agency comes up with the concepts that express the value of a company’s brand in interesting and memorable ways In simple terms, the creative services group develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 109 List and describe the four methods of agency compensation ANSWER: Commission system: The traditional method of agency compensation is the commission system, which is based on the amount of money the advertiser spends on media Under this method, 15 percent of the total amount billed by a media organization is retained by the advertising or promotion agency as compensation for all costs in creating advertising/promotion for the advertiser The only variation is that the rate typically changes to 16 percent for outdoor media Markup charges: This method of agency compensation adds a percentage markup charge (sometimes referred to as cost-plus) to a variety of services the agency purchases from outside suppliers In many cases, an agency will turn to outside contractors for art, illustration, photography, printing, research, and production The agency then, in agreement with the client, adds a markup charge to these services Fee system: A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided The hourly rate can be based on average salaries within departments or on some agreed-on hourly rate across all services This is the most common basis for promotion agency compensation Pay-for-results: Many advertisers and agencies alike have been working on compensation programs called pay -for-results or incentive-based compensation that base the agency’s fee on the achievement of agreed-on results DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 110 Describe the three new types of consultants have emerged in recent years ANSWER: Three new types of consultants have emerged in recent years The first is a database consultant, who works with both advertisers and agencies Organizations of this type help firms identify and then manage databases that allow for the development of integrated marketing communications programs Another new type of consultant specializes in website development and management These consultants typically have the creative skills to develop websites and corporate home pages and the technical skills to advise advertisers on managing the technical aspects of the user interface The third type of consultant works with a firm to integrate information across a wide variety of customer contacts (including social media activities) and to organize all this information to achieve customer relationship management (CRM) DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: Moderate AIBP.OGUI.15.2-4 United States - BUSPROG: Analytic United States - Ohio - DISC: Promotion Bloom's: Comprehension ... involved with and committed to a brand c It indicates the process of describing the firm’s objectives for the brand in the near term and long term d It refers to passive, intrusive advertising. .. consumer products and services are the most prominent users of advertising and promotion a True b False ANSWER: False DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS:... sources of brand and product information a True b False ANSWER: DIFFICULTY: True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: